SD SB18

Repeals income modifications related to bad debts for South Dakota's bank franchise tax, eliminating provisions that previously allowed financial institutions to adjust taxable income based on bad debt deductions

Updates the state's Internal Revenue Code reference date to January 1, 2025, for purposes of calculating bank franchise tax obligations

Maintains existing add-backs to taxable income including state/municipal bond interest, income taxes paid to other states, federal tax refunds, and dividends received from other corporations

Preserves existing subtractions from taxable income including dividends from financial institutions subject to the franchise tax, federal taxes paid, certain interest expenses, and capital gains from liquidations

Allows S-corporation and LLC financial institutions to continue subtracting imputed federal income taxes from their taxable income calculations